Loading...
HomeMy Public PortalAboutResolution 01-05 J-Ditch Phase IIRESOLUTION NO. 01-05 A RESOLUTION OF THE CITY OF MCCALL, VALLEY COUNTY, IDAHO, AUTHORIZING PAYMENT OF THE BALANCE OF THE CONTP~ACT PRICE TO EMPLOYERS INSURANCE OF WAUSAU, A MUTUAL COMPANY, IN ACCORDANCE WITH THE TERMS OF THE CONTP~ACT IN THE J-DITCH PHASE 2 PROJECT; AUTHORIZING MAYOR ALLAN MULLER, TO EXECUTE AN AGREEMENT TO THAT EFFECT ON BEHALF OF THE CITY; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MCCALL, Valley County, Idaho, as follows: Section 1: As required in Performance Bond No. 2350 50 051582, issued by Employers Insurance of Wausau, a Mutual Company (hereinafter "Wausau"), issued to secure the performance of St. Clair Contractors, Inc., on the J-Ditch Phase 2 Project, the City of McCall hereby agrees to pay the balance of the contract price, as required in Paragraph 3.3 of said bond, to Wausau in accordance with the terms of the contract, for the above mentioned project. Section 2: The Mayor for the City of McCall is hereby authorized to sign the agreement attached hereto as Exhibit "A" and incorporated herein by reference, stating the City of McCall's agreement to pay Wausau the balance of the contract price in accordance with the terms of the contract as provided in Section 1, above. Section 3: This resolution shall take effect and be in force from and after its passage and approval. DATED the ~ day of March, 2001. CITY OF MCCALL Valley County, Idaho ~ll~n Muller, Mayor ATTEST: Consuelo Blake, Deputy City Clerk AGREEMENT TO PAY IN ACCORDANCE WITH TERMS OF CONTRACT AGREEMENT made by the City of McCall, an Idaho Municipal Corporation, as required by Performance Bond No. 2350 50 051582(hereinafter the "Bond"), issued by Employers Insurance of Wausau, a Mutual Corporation, (hereinafter "Wausau") to secure the performance of their principal, St. Clair Contractors, Inc. on the City of McCall J-Ditch Phase II Project. A copy of said Bond is attached hereto as Exhibit "1" and incorporated herein by reference. The City of McCall, Idaho, agrees as follows: As required by Paragraph 3.3 of the Bond, the City of McCall agrees to pay the balance of the contract price to surety in accordance with the terms of the contract. DATED this day of March, 2001. CITY OF MCCALL VALLEY COUNTY, IDAHO By~ff~ ~ ALLAN~M-ULLER, Mayor ATTEST: Consuelo Blake, Deputy City Clerk Performance Bond Bond No. 2350 50 051582 Any singular reference to Contmctor~ Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): SURETY (Name and Address of Principal Place St. Clair Contractors, Inc. of Business): Employers Insurance of 111 E. 40th Street Wausau A Mutual Company Boise, ID 83714 P.O. Box 4025, Beaverton, OR 97076 OWNER (Name and Address): City of McCall, Idaho; 216 East Park Street; McCall, ID 83638 CONTRACT ~;~t.M~r~;M~0101~0~n N~ne ~un0dred ~ho~sand Nine Hundred Thirteen and '6 ---D ~ 9 ) , Description ~q/ladle and Loc~C~ion~:a~ay o~Mc~a~l -~-~D~tcll~ -' F~ase 2 project located near or adjacent to the City of McCall s Wastewater Treatment Plant BOND Date (Notearlierthan ConmctDate): May 11, 2000 Amount-Three Million Nine Hundred Thousand Nine Hundred .... '.66/100~-~-~ollars ($3,900,913.66) Moomcat~on~to mis ~ono form: None Thirteen and Surety and Contractor, intending to be legally bound hereby, subject to the terms printed on the reverse side hereof, do each cause this Performance Bond to be duly executed on its behalf by its authorized officer, agent or representative. comacacroa Company: St/ ContraCto'r: Name and ~l~tle:/ (Space is provided (Corp. Seal) SURETY Cgmpany: Employers _Insu~an~orp. Seal) of Wausau~A [4utua~ Company . Signature: Name and Title: Brenda~'J. ~mith, (Attach PowerofAttomey) Attorney-in-Fact ;low for signatures of additional parties, if required.) CONTRACTOR AS PRINCIPAL SURETY Company: '~ (Corp. Seal) Company: (Corp. Seal) Signature: Signature: Name and Title: Name and Title: EJCDC No. 1910-28-A (1996 Edition) Originally prepared through the joint efforts of the Surety Association of America, Engineers Joint Contract Documents Committee, the Associated General Contractors of America. and the American Institute of Architects. 00610- I I. I;,',e,CONI'N,-\CTOP,. and the ~urety, .iointly and se,.erally, bind themselxes, their heirs, executors, administrators, successors and assigns to the Owner for the performance of the Contract, which is incorporated herein by reference. 2. If the CONTRACTOR performs the Contract, the Surely and the CONTRACTOR ha;e no obligation under this Bond, except to participate in conferences as provided in paragraph 3.1. 3. If there is no OWNER Default, the Surety's obligation under this Bond shall arise alter: 3.1. The OWNER has notified the CONTRACTOR and the Surety at the addresses described in paragraph 10 below, that the OWNER is considering declaring a CONTRACTOR Delhult and has requested and attempted to arrange a conference with the CONTRACTOR and the Surety to be held not later than fifteen days after receipt of such notice to discuss methods of perlbrming the Contract. It' the OWNER, the CONTRACTOR and the Surety agree, the CONTRACTOR shall be allowed a reasonable time to pertbrm the Contract, but such an agreement shall not waive the OWNER's right, if iiny, subsequently to declare a CONTRACTOR Del'au ti; and 3.2. The OWNER has declared a CONTRACTOR Default and tbrmally terminated the CONTRACTOR's right to complete the Contract. Such CONTRACTOR Default shall not be declared earlier than twenty days after the CONTRACTOR and the Surety have received notice as provided in paragraph 3.I; and 3.3. The OWNER has agreed to pay the Balance of the Contract Price to: 3.3. I. The Surety in accordance with the terms of the Contract: 3.3.2 Another contractor selected pursuant to paragraph 4.3 to perform the Contract. 4. When the OVvt'NER has satisfied the conditions of paragraph 3, the Surety shall promptly and at the Surety's expense take one of the lbllowing actions: 4.1. Arrange for the CONTRACTOR, with consent of the OWNER. to perform and complete the Contract; or 4.2. Undertake to perform and complete the Contract itself; through its agents or through independent contractors; or 4.3. Obtain bids or negotiated proposals from qualified contractors acceptable to the OWNER for a contract i'br pertbrmance and completion of the Contract, arrange i'br a contract to be prepared tbr execution by the OWNER and the contractor selected with the OWNER's concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the Bonds issued on the Contract, and pay to the Ox2v~ER the amount of damages as described in paragraph 6 in excess of the Balance of the Contract Price incurred by the OWNER resulting from the CONTRACTOR Defauh; or 4.4. Waive its right to perlbrm and complete, arrange lbr completion, or obtain a new contractor and with reasonable promptness under the circumstances; 4.4.1 After investigation, determine the amount tbr which it may be liable to the OWNER and. as soon as practicable after the amount is determined, tender payment therefor to the OWNER; or 4.4.2 Deny liability in whole or in part and notify the OWNER citing reasons therefor. 5. If the Surety does not proceed as provided in paragraph 4 with reasonable promptness, the Surety shall be deemed to be in default on this Bond fifteen days alter receipt of an additional wrttten notice (rom the OWNER to the Surety demanding Ihat the Surety pertbrm its obligations under this Bond. and the OWNER shall be entitled to enforce any remedy available to the OWNER. If the Surety proceeds as provided in paragraph 4.4, and the OWNER refuses the payment tendered or Ihe Surety has denied pliability, in t~hole or in part. ~xithout t~rther noI~ce file OWNER shall be entitled enlbrce any remedy available to the OWNER. 6. After the OWNER has terminated the CONTRACTOR's right to complete the Contract. and it' the Surety elects to act under paragraph 4.1, 4.2, or 4.3 above, then the responsibilities of the Surety to the OWNER shall not be greater than those of the CONTRACTOR under the Contract. and the responsibilities of the OWNER to the Surety shall not be greater than those of the OWNER under the Contract. To a limit of the amount of this Bond, but subject to commitment by the OWNER of the Balance of the Contract Price to mitigation of costs and damages on the Contract. the Surety is obligated without duplication tbr: 0. I. The responsibilities of the CONTRACTOR tbr correction of defecti,.e Work and completion of the Contract; 6.2. Additional legal, design professional and delay costs resulting from CONTRACTOR's Default, and resulting fl'om the actions or failure to act of the Surety under paragraph 4; and 6.3. Liquidated damages, or if no liquidated damages are specified in the Contract, actual damages caused by delayed pertbrmance or non-performance of the CONTRACTOR. 7. The Surety shall not be liable to the OWNER or others lbr obligations of the CONTRACTOR that are unrelated to the Contract, and the Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations. No right of action shall accrue on this Bond to any person or entity other than the OWNER or its heirs, executors, administrators, or successors. 8. The Surety hereby waives notice of any change, including changes of time. to the Contract or to related subcontracts, purchase orders and other obligations. 9. Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the Work or part of the Work is located and shall be instituted within m,,o years after CONTRACTOR Default or within two years alter the CONTRACTOR ceased working or within two years after the Surety refuses or lhits to perlbrm its obligations under this Bond, whichever occurs first. If the provisions of this paragraph are void or prohibited by la,v, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 10. Notice to the Surety, the OWNER or the CONTRACTOR shall be mailed or delivered to the address shown on the signature page. I l. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the Contract was be pertbrmed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted here from and provisions conlbrming to such statutory or other legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 12. Definitions. 12.1 Balance of the Contract Price: The total amount payable by the OWNER to the CONTRACTOR under the Contract alter all proper adjustments have been made, including allowance to the CONTRACTOR of any amounts received or to be received by the OWNER in settlement of insurance or other Claims for damages to which the CONTRACTOR is entitled, reduced by all valid and proper payments made to or on behalf of the CONTRACTOR under the Contract. 12.2. Contract: The agreement between the OWNER and the CONTRACTOR identified on the signature page, including all Contract Documents and changes thereto. I2.3. CONTRACTOR Default: Failure of the CONTRACTOR, which has neither been remedied nor waived, to perlbrm or otherx~,ise to comply with the ierms o f the Contract. 12.4. OWNER Default: Failure of the OWNER, which has neither been remedied '~or waived, to pay the CONTRACTOR as required by the Contract or to perform and complete or comply ',~. it h the o~her terms lhereofi 00610 - 2